No-holds-barred budgeting for college students
Posted
Feb 13 2008, 06:53 PM
by
Karen Datko
On the plus side, college sophomore Bill Box earns $200 a month delivering pizza, and his grandmother gives him $100 a semester if he's not flunking out. On the minus side, he owes $1,200 on credit cards, mostly for cigarettes and alcohol, and $12,000 so far in student loans. He lives in a dorm, has a meal plan and buys books at the college bookstore.
Bill doesn't know it, but he's already on the highway to debt hell. Fortunately, he's about to get some tough love from fellow student Patrick at SchoolisHard.com. "College students are notorious for living outside of their means," writes Patrick in a post called "Make a debt-free college budget." "I know you are broke, but go cry to that shiny new Nintendo instead of me."
Bill, actually a stickman created by Patrick to make a point, needs to start tracking his spending, and then figure out what he can do without or with less of. Under Patrick's plan -- eliminating fast food and a cell phone, halving cigarette and alcohol consumption, and finding cheaper sources of textbooks -- Bill can eliminate his credit card debt in six months. "Assuming he passes this semester and Granny coughs up the cash," Patrick adds.
Next, Bill should save up for an apartment. Patrick says, "This will enable him to nix the meal plan, get out of the prison cells, and save a ton of cash."
Patrick says it's easier to reduce nonessentials by avoiding a feeling of deprivation. "Instead of saying 'I will spend no more than $40,' adopt the mind-set of 'I refuse to spend any less than $15." He adds, "Tip: If you have so little self-control that you can't do this, go ahead and be deprived. Just keep in mind that this article isn't targeted toward weak-minded individuals."
